Australia’s leading online car dealership and subscription service, HelloCars, has today announced the launch of Blinker, a Software-as-a-Service (SaaS) platform. The SaaS solution enables car dealerships, resellers, and manufacturers among other Blinker customers, to offer their own vehicle subscription services to customers.
The car subscription market is exploding globally. In fact, Frost & Sullivan reports that by 2025, 10 per cent of all new vehicle sales in Europe and the US will be subscription-based, representing a business opportunity worth US$100 billion.
Michael Higgins, co-founder of Blinker, believes we can expect Australia to follow suit.
“With over 1.15 million cars sold in Australia in 2018, we can expect car subscription models to be a multi-million if not billion-dollar opportunity for local car dealerships. In a market where we see car sales declining, the Blinker subscription platform can unlock new opportunities for dealerships,” he said.
“Not only will Blinker improve the customer experience but it can also help to boost revenue by up to 50 per cent, helping them take the lead in a market that will be worth billions of dollars in Australia alone.”
Car subscription is still relatively new in Australia. It provides a flexible, affordable alternative to traditional car ownership, leasing or long-term rental. Through an affordable weekly payment, customers can choose a car and plan that suits their needs, with the ability to swap and return cars as their needs change.
Inside the dealership, Blinker car subscription supports traditional dealership revenue channels by offering an alternate path to purchase, an extended test drive opportunity and a means to service customers that may not be suitable for finance.
Blinker’s end-to-end car subscription platform provides the software, training and services for dealerships to offer subscriptions to customers simply and easily. This will allow dealerships to service more customers and monetise existing vehicle inventory in new ways, whilst reducing costs, delivering an immediate return on investment.
How the car subscription platform works
Utilising its SaaS solution, car dealerships can subscribe their existing vehicle inventory to customers for an affordable recurring weekly payment. Blinker’s bespoke algorithm calculates the most cost-effective subscription model, based on the vehicle information, which includes the costs of registration, insurance, servicing, maintenance, roadside assistance and depreciation.
The end-to-end Blinker car subscription platform also incorporates training, robust serviceability, authentication and risk management processes. This makes it a risk-free investment for dealerships, ensuring they are protected against fraud or defaults, while meeting compliance and customer requirements.
Currently, there is no upfront cost associated with the implementation of the platform, with Blinker taking a small percentage of each subscription. Higgins believes the platform will not only address changing consumer purchasing habits but also complement existing revenue models.
“Low consumer confidence and tighter lending conditions post-Royal Commission has put a dampener on car sales in Australia. As a result, Aussies are increasingly looking for alternatives to traditional car ownership. The Blinker platform enables car sellers to capitalise on this opportunity, offering a service more aligned with changing consumer purchasing habits.”
“With Blinker, dealerships get an end-to-end car subscription platform that will enable them to capitalise on this shift and develop new revenue models in an extremely cost-effective manner. From long-term test drives and subscribe now, buy later, to the ability to monetise aged stock and offer new financial models, Blinker will complement and support their existing revenue streams,” said Higgins.